Sesh raises $40 million from 8VC Post Malone, and Diplo to take on Zyn

After vapes staved off the extinction of tobacco, a new generation of nicotine products is promising a safer, albeit no less addictive, form of consumption through tobacco-free pouches made popular by the likes of Zyn and Velo. Now, a celebrity-backed upstart called Sesh is trying to challenge those incumbents. 

Buoyed by $40 million in venture funding from Palantir cofounder Joe Lonsdale’s 8VC, along with music stars Diplo and Post Malone, Sesh is pitching itself as a safer alternative for cigarette and vape users through so-called white pouches—one of the fastest-growing consumer categories.

While Sesh is competing against Big Tobacco offerings like Philip Morris’s Zyn, its founder and CEO, Max Cunningham, says that Sesh’s independent status—and unique formula, designed by Zyn’s inventor—will make it a formidable opponent. “Not all pouches are created equal,” he told Fortune.

HOW SESH STARTED

A native of British Columbia, Cunningham grew up playing hockey, where chewing tobacco was omnipresent. He shifted to vaping but couldn’t quit the habit until he was introduced to his first nicotine pouches. (Cunningham says he currently goes through about half a can of Sesh, or 10 pouches, a day.)

While pouches are still addictive, proponents argue that their lack of tobacco and combustion reduces the carcinogenic harms associated with cigarettes and vapes, similar to nicotine gum or patches. While U.S. regulators are still trying to wrap their arms around the category, former President Joe Biden gave the Food and Drug Administration supervisory authority in 2022 as it moved to restrict vapes. The vaping startup Juul has seen its valuation plummet 95% amid the regulatory crackdown.

The FDA, however, took a softer stance toward pouches, including soliciting applications from manufacturers, including Sesh, which have been allowed to operate. In early 2025, the agency approved marketing for different Zyn products, including its flavored offerings, which signaled a clear path for other companies that had already submitted applications.

NICOTINE POUCHES PERFECTED

While pouches are still addictive, proponents argue that their lack of tobacco and combustion reduces the carcinogenic harms associated with cigarettes and vapes, similar to nicotine gum or patches. While U.S. regulators are still trying to wrap their arms around the category, former President Joe Biden gave the Food and Drug Administration supervisory authority in 2022 as it moved to restrict vapes. The vaping startup Juul has seen its valuation plummet 95% amid the regulatory crackdown.

Sesh+ pioneers a new era in nicotine alternatives. Our mission is to craft innovative, high-quality nicotine products that redefine satisfaction and elevate everyday experiences. We’re committed to providing a discreet, flavorful, and premium product. We believe in offering more than just a pouch – we offer a choice for those who seek a balanced and enjoyable alternative.